PSA’s human analyst-driven due diligence solutions extend to tailored assignments involving high-risk, high-value, or complex transactions. For such matters, our investigative team will propose a scope of work designed specifically to achieve a client’s information objectives. IDD reports differ from program due diligence in that they are not limited by a set of predefined processes.

  • Typical investigative due diligence (IDD) reports address high-risk transactions, partnerships taking place in opaque informational environments or where there is an identified potential for concern.
  • The IDD’s fit-for-purpose methodology emphasizes human-to-human intelligence collection and the analytical abilities of our in-house team to inform and enable key client decisions.
  • IDD subjects often include pre-IPO, pre-JV or M&A due diligence on counterparties with a complex risk position. Additional use cases include the detailed evaluation of significant and critical third-party agents and vendors in high risk jurisdictions.

 

To learn about PSA’s routine third-party due diligence services, see our In-Program Due Diligence page.

IDD CASE STUDIES

| Lifting the veil on an opaque corporate structure

An IDD on a Mediterranean-based energy services company with a complex cross-border structure revealed that its key principal had close ties to a national leader in Latin America. Further research on this link revealed that the subject entity was under investigation in the Latin American country for suspected involvement in a high-profile corruption scandal. A natural ownership map created for the subject entity revealed that its convoluted ownership structure was intended to mask the near-complete ownership of the entity by a handful of politically-exposed individuals.

| Uncovering hidden sanctions and money laundering risks

An opaque investment firm in a Caucasus nation was found to be part of a family business empire connected to the most powerful political leaders in the country. Well placed human sources revealed that not only was its commercial success completely dependent on the good political standing of the family, but this status was increasingly being challenged. On top of this, the company would likely expose its Western business partners to high FCPA risks and multiple sources alleged that the subject engaged in money laundering on behalf of government sanctioned-entities.

| Identifying political exposure risks with an African mining company

An inquiry into an African mining company revealed close ties between the owners of the subject company and a national leader. Sources interviewed as part of an IDD investigation revealed the subject company’s reliance on government favors as well as the entanglement of its key principals in a range of ongoing high-profile scandals and national-level political disputes.

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